Hong Kong’s financial secretary Paul Chan said that the city has all the capabilities necessary to facilitate the implementation of the Belt and Road Initiative.
Currently, Hong Kong is a financial center and an ideal venue where the countries participating in the mentioned initiative can use their robust expertise and international connections. The corresponding statement was made by Paul Chan on Wednesday, September 11, during a speech at the Belt and Road Initiative summit.
The financial secretary of Hong Kong also noted that the mentioned initiative has already generated real results. In this context, he noted that countries around the world have benefited. Continuing the discussion on the topic of Hong Kong’s participation in the initiative in the status of a source of positive momentum, contributing to the achievement of the goals, Paul Chan stated that professional services and connection opportunities will help expand collaboration and stimulate investment activities.
The Belt and Road Initiative, also sometimes referred to as the New Silk Road, is a global infrastructure development strategy approved by the Chinese government in 2013. Investments in more than 150 countries and international organizations are envisaged within the framework of this project. The Belt and Road Initiative consists of six land-based urban development corridors linked by road, rail, energy, and digital infrastructure. This is also the Chinese government’s strategy for the Maritime Silk Road port infrastructure.
Beijing intends to fully implement the mentioned initiative by 2049. According to numerous studies conducted by the World Bank, the Belt and Road Initiative can increase trade flows in 155 participating countries of this project by 4.1% and reduce the cost of international trade by 1.1-1.2%. Also, these forecasts provide for such a positive effect as the growth of gross domestic product (GDP) of developing countries in East Asia and the Pacific region in the range from 2.6% to 3.9%. Estimates from the London-based consultants Centre for Economics and Business Research contain expectations that the Belt and Road Initiative will begin to increase global GDP by $7.1 trillion per year by 2040. The experts of the mentioned organization also claim that this initiative will reduce the frictions that restrain global trade. The Centre for Economics and Business Research assumes that the successful implementation of the project will contribute to an increase in the number of participating countries.
Paul Chan, during his speech on Wednesday, said that Hong Kong will continue to use its unique position and strength associated with the status of an international financial, trade, shipping, and professional services center. According to him, the city will strive to offer new opportunities and generate value for economies, enterprises, and people in the region where the Belt and Road Initiative is being implemented.
Moreover, Paul Chan stated that Hong Kong is Asia’s premier fundraising hub. According to him, the diversity of equity, bond, and currency markets contributes to the formation of an ideal environment for gaining more governments and companies to raise financing for green transition, infrastructure, and community projects.
The Belt and Road Initiative summit was jointly organized by the Hong Kong government and the Hong Kong Trade Development Council. The event is dedicated to the issues of building an interconnected, innovative, and green belt and road. The summit was attended by senior government officials and business leaders from countries and regions located along the economic corridor and beyond. In this case, a share of views took place, and attention was paid to exploring business opportunities.
Paul Chan stated that Hong Kong welcomes companies and projects from all countries of the Belt and Road Initiative to list on the local stock market worth $4 trillion. According to him, in this case, firms can gain access to both mainland and international capital.
Paul Chan says that the Hong Kong bond market is a unique asset. In this context, the financial secretary mentioned the local green bond market, which accounted for almost a third of the total issuance of securities of the relevant category in Asia last year. According to him, this market can contribute to efforts to ensure sustainable development.
Paul Chan said that Hong Kong can do a lot for the bright future of other economies. In the context of this statement, the financial secretary noted the willingness of the city to cooperate to use the emerging opportunities and jointly generate a more interconnected, mutually beneficial, and prosperous future.
Ding Yanzhang, the chairman of the Power Construction Corporation of China, in a panel discussion of the mentioned summit, stated that green transformation and digitalization of the economy will be the main driving forces for the participants of the Belt and Road Initiative. It was also noted separately that Hong Kong can play an important role as a facilitator and innovator.
The specified city has a unique position in the Great Bay area. Hong Kong also has the advantage of outstanding specialists in the areas of technology, law, and financial services. Ding Yanzhang says that the mentioned factors can contribute to achieving the goals of the Belt and Road Initiative.
Cheah Cheng Hye, co-chairman and co-chief investment officer at Value Partners Group, stated that currently, the specified initiative suggests that progress does not require Westernization and offers a clear path forward. In the relevant context, it was also noted that against the background of growing geopolitical tension, one of the manifestations of which is the escalation of the difficult situation in the Middle East, which contains risks of scaling up military operations, the countries of the South, as one of the regions of the world, have begun to review their development strategy. Cheah Cheng Hye says that the current state of affairs in the space of interstate relations increases the level of compelling of the Belt and Road Initiative. He also stated that now China and Hong Kong are considered by other countries as real solution providers.
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